bam1960 53 Report post Posted January 22, 2015 Also entered SPX Weekly Iron Condor Jan5 1930/1940/2080/2090 @ 2.60 credit yesterday. I have been doing these regularly, decided to post for anybody that might be interested. Bret Share this post Link to post Share on other sites
Kim 7,513 Report post Posted January 22, 2015 Thanks for sharing Bret. What's your plan for those trades (profit target, maximum loss, adjustments etc.)? Share this post Link to post Share on other sites
bam1960 53 Report post Posted January 22, 2015 Profit target 12-15% Maximum loss 15% Will adjust @ ~ 20 points from short strikes depending on how fast market is moving Began trade with shorts ~15 delta Share this post Link to post Share on other sites
bam1960 53 Report post Posted January 22, 2015 Bot a 2110 call Jan5 @1.10 moving fast reduced deltas by about 70% Share this post Link to post Share on other sites
4REAL 110 Report post Posted January 22, 2015 Hi Bret, At the risk of asking a stupid question Why do you play SPX instead of RUT ? A few weeks ago Kim pointed out that the IV of RUT options is significantly higher than SPX which means that the shorts with 15 delta (for RUT) are much further OTM which means one gets about the same credit for less risk. Has SPX other advantages over RUT ? Thanks CJ Share this post Link to post Share on other sites
bam1960 53 Report post Posted January 22, 2015 Well I have been trading SPX lately and have done both. Just have gotten comfortable with it lately but I think it is whatever your comfortable with. Share this post Link to post Share on other sites
Kim 7,513 Report post Posted January 22, 2015 There is always a tradeoff. RUT IV is higher, but so is HV (historical volatility). So it's true that you can trade further strikes, but the probability to reach those strikes is similar because RUT tends to move more (on average). Share this post Link to post Share on other sites
4REAL 110 Report post Posted January 22, 2015 Ok, Bret, Kim thanks for the answer Share this post Link to post Share on other sites
bam1960 53 Report post Posted January 23, 2015 CJ Just know that i am not the trader that Kim is, I am just sharing some trades I am doing along with SO trades. I am getting better but just know that the buyer beware. Bret Share this post Link to post Share on other sites
Kim 7,513 Report post Posted January 23, 2015 Just be aware that those weekly trades are relatively risky. As a general guidance, I would recommend to reduce position sizing and close at least 2-3 days before expiration. When the markets are calm and moving sideways, it might seem like an ATM machine, but when the markets start to move, especially in case of gaps, losses can accumulate very quickly. So I'm not saying people should not trade them, just be aware of the higher risks. Share this post Link to post Share on other sites
bam1960 53 Report post Posted January 23, 2015 Ditto with Kim and I also have 1/2 of normal position Share this post Link to post Share on other sites
4REAL 110 Report post Posted January 24, 2015 CJ Just know that i am not the trader that Kim is, I am just sharing some trades I am doing along with SO trades. I am getting better but just know that the buyer beware. Bret Hi Bret, Sure these trades are riskier, but I appreciate it that you share them, it is food for thought and it helps me learn faster Share this post Link to post Share on other sites
4REAL 110 Report post Posted January 24, 2015 Just be aware that those weekly trades are relatively risky. As a general guidance, I would recommend to reduce position sizing and close at least 2-3 days before expiration. When the markets are calm and moving sideways, it might seem like an ATM machine, but when the markets start to move, especially in case of gaps, losses can accumulate very quickly. So I'm not saying people should not trade them, just be aware of the higher risks. Hey Kim, Thanks for your insight. The last SO RUT trade seemed quite easy. But there was your right timing to close the trade (avoiding stress) and the market moved like we needed it to move. Unfortunately the market is not always so accommodating.... Share this post Link to post Share on other sites
bam1960 53 Report post Posted January 26, 2015 exited 1940/1930 put spread @.15 debit Share this post Link to post Share on other sites
bam1960 53 Report post Posted January 26, 2015 Exited 2080/2090 @1.45 and sold 2110 call @.15credit which for whole trade broke even. Decided to close being too close to strike with gamma risk. I was not sure would be able to watch it tommorow. Will probably do it again Wed. Share this post Link to post Share on other sites
bam1960 53 Report post Posted January 29, 2015 decided to skip these trades with fed meetings, glad I did. Will wait till markets settle down. Share this post Link to post Share on other sites
